FX.co ★ XAG/USD, SILVER

The Silver price movements have exhibited quite volatile dynamics in recent weeks. In the previous phase, there was a fairly aggressive increase, forming a significant peak in the upper area, before strong selling pressure finally occurred and formed a sharp decline. This decline even penetrated the moving average area and formed a lower low structure, indicating a change in medium-term sentiment from bullish to bearish at that time. Looking at the positions of the 100 Moving Average (blue line) and 200 Moving Average (red line), the price is currently above both lines. This is an early signal that momentum is starting to be dominated again by buyers after previously being below the moving averages and moving in a prolonged consolidation phase. The 100 Moving Average, which had been under pressure, is now starting to slope and has the potential to trend upward, while the 200 Moving Average remains flat but is starting to show signs of a slow reversal. This condition indicates a transition phase from bearish to potentially bullish in the medium term. The latest price structure shows the formation of higher lows and higher highs in the last few waves. After forming a base around the 71-72 area, the price gradually rose and broke through several minor resistance levels, including the 79 and 82 areas, which previously served as supply zones. A breakout above these areas reinforces the indication that buyers are beginning to take control of the market.

The Silver price is approaching the next resistance area around 96, which appears to be a key level based on previous historical movements. As long as the price can stay above the 100-day moving average (MA) and does not fall back below the 86-88 area, which now serves as both dynamic and horizontal support, the potential for further upside remains quite open. The 96 area is the closest resistance area to watch. If a valid breakout occurs accompanied by strong momentum, the chance of continuing the rise towards the psychological area above 100 increases. However, if the price fails to break through this resistance and forms a strong rejection, a technical correction back towards the 100-day moving average (MA) is quite realistic. The relatively stable volume during the last upward phase also suggests that this increase is not just a momentary spike, but rather more of a gradual accumulation. However, its important to be aware that the prices distance from the 100-day moving average (MA) on the H4 timeframe could trigger a healthy pullback before resuming the uptrend. Such a correction could actually strengthen the bullish structure as long as it doesnt breach the key support area.